United are set to offer the Portuguese midfielder a £200,000-a-week contract, with the 26-year-old impressing since his move to United last January.
It comes as no surprise that the two Spanish giants are monitoring Fernandes, who has got 22 goals and 14 assists in 38 appearances for United so far.
Ever since Fernandes signed for the club, United have played significantly better, often looking lost when he is not playing.
This was evident on Saturday, with United struggling in the first half against West Ham United, but when he was introduced, they played much better, as he assisted one of the goals as they went on to win 3-1.
Barcelona and Real Madrid have both had their struggles in recent times, failing to have the cutting edge that Bruno Fernandes could provide.
However, United clearly have no intentions of selling him, seeing as he is crucial to their side, and possibly a future captain of the side.
On the other hand, United outcast Jesse Lingard has reportedly asked United to leave the club in January, with Tottenham Hotspur, Everton, West Brom, Leicester City, Rangers and Celtic all interested in his signature.